Gold edges lower, as US tax uncertainty sends investors to the sidelines
Bengaluru — Gold prices inched down on Tuesday, with the dollar holding steady on higher US Treasury yields amid uncertainty over the outlook for tax reforms in the US. Higher US bond yields can pressure gold prices as they reduce the appeal of nonyielding bullion, while a stronger dollar makes the metal costlier for holders of other currencies. Spot gold was down 0.1% at $1,276.29 an ounce at 3.55am GMT. US gold futures for December delivery fell 0.2% to $1,276.30. "Gold prices continued to trade in a very tight range as investors await cues from global markets," ANZ said in a note. "Rising bond yields and the lack of progress of US tax reforms have seen investors move to the sidelines in the gold market." US Treasury two-year note yields hit a fresh nine-year high on Monday, as the yield curve resumed its flattening and investors priced in a 25-basis-point interest rate hike by the Federal Reserve in December. Meanwhile, Congressional Republicans pushed ahead on Monday on a US tax...
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